Target has announced a significant rollback of its Diversity, Equity, and Inclusion (DEI) programs, joining the ranks of major corporations such as Walmart, Meta, and McDonald's in this strategic retreat. The decision was communicated to employees via a memo authored by Kiera Fernandez, Target's Chief Community Impact and Equity Officer, which CNBC obtained. The company has decided to terminate its three-year DEI goals and will cease reporting to external diversity-focused groups, including the Human Rights Campaign's Corporate Equality Index.
The decision marks the end of a program aimed at increasing the number of products from Black- or minority-owned businesses on Target's shelves. This shift follows former President Donald Trump's executive orders to dismantle the government's DEI programs. Target's CEO, Brian Cornell, had previously strengthened the company's DEI initiatives following the murder of George Floyd in Minneapolis—a tragic event that Cornell described as deeply personal, stating, "That could have been one of my Target team members."
The murder of George Floyd and subsequent "Black Lives Matter" protests in 2020 prompted Target to enhance its longstanding diversity commitments. However, recent pressures from conservative activists and the Supreme Court's ruling against affirmative action in colleges have led several companies to reconsider their DEI strategies. While the court's decision does not mandate corporate action, it has contributed to an evolving external environment that many businesses are seeking to navigate.
Target's decision to scale back its DEI programs appears motivated by a desire to align with the current external landscape and pursue growth opportunities. The memo from Fernandez emphasized the company's goal to "stay in step with the evolving external landscape," highlighting a strategic pivot towards competitiveness and collaboration.